As advances in technology permit continued increases in the degree of miniaturization of electronic components, smart cards have been developed which include a processor and/or memory built into a transport medium the size of a typical credit card. The processors in these cards can be programmed like any other computer to perform desired functions. Smart card readers are known which permit one to both read the contents of a smart card, but also to interact with the smart card to change its contents and to accomplish cooperative functions which can range from the simple to the sophisticated.
A number of applications of smart card technology have been proposed. However, only relatively few have been actually implemented and those that have, have been limited mainly to a single subject matter domain.
Automatic teller machine banking is well known in the art by which one accesses a bank account through the use of a bank card or a credit card and a personal identification number (PIN). Many account functions can be performed using ATM's, however, many cannot. Further, there is inconvenience associated with physically travelling to a nearby ATM machine in order to obtain banking services.
Some banks provide on-line access to some account information, which might be accessible from a user's personal computer, but these systems do not permit many important and desirable account functions, e.g. cash withdrawals.
Credit cards are also well known in the art. A credit card issuer provides a line of credit to a card holder, typically, and the card holder draws on that line of credit to make purchases from merchants who accept the card. The merchants can obtain cash value from the credit card issuer almost immediately at the cost of a service fee or percentage.
Over the course of a lifetime, a person may accumulate a number of credentials which serve, typically, as prerequisites for other activities. For example, a person obtains a driver's license upon establishing certain information about himself and by demonstrating skill in certain aspects of the regulatory scheme and competence in the handling of motor vehicles. Similarly, graduation from high school or from college results normally in a diploma which is normally a formal document signed and sealed by the educational institution indicating compliance with their requirements for a degree or for graduation.
Also associated with each individual is a set of information which is typically considered confidential regarding for example that individual's medical history and medical status.
There have been proposals for the creation and use of electronic money. However, wide spread usage of the proposals has not been achieved, perhaps because of the complexities associated with utilizing the technology and because of the capital investment required to equip commercial establishments with terminals which can accept and process electronic money.
A number of schemes have been utilized to ensure only authorized access to computer systems and computer software. Typically, the systems utilize a log-on procedure which requires the user identification and a password prior to permitting access. However, passwords are subject to being hacked and user ID's are frequently standardized.